Our View: Get ready for the pension reform ride

The workings of the Illinois General Assembly often remind us of a carnival: There’s sleight of hand and rides that can make you sick, and you leave with an empty wallet.

Even when you’re declared a winner, you get the feeling you spent more than the prize was worth.

With that in mind, we’re going to curb our enthusiasm about a possible pension solution. Lawmakers return Tuesday to Springfield to vote on the deal.

At first glance, the provisions of the agreement reached by Illinois’ top legislators seem reasonable: pushing back workers’ retirement age, reducing employee contributions, providing a 401(k)-style option and reducing cost-of-living adjustments. The plan is expected to save $160 billion over the next 30 years.

Union leaders, without seeing details of the plan, already oppose it.

You can’t really blame them for distrusting lawmakers who helped get Illinois into this $100 billion pension mess. Underfunding, pension holidays and pension sweeteners they had no way of paying for have exacerbated the problem.

Also, if they had dealt with pensions a decade ago when the situation was less dire, drastic changes might not be needed today.

Yet the unions are not blameless. They helped get those lawmakers elected.

Most of us would agree that the state should live up to its obligations, and according to information that has seeped out, the pension deal includes a funding guarantee. Opponents think it’s too restrictive and takes away flexibility when money is tight. It would guarantee retirees are paid before schools, social service providers, etc. That might be a tough sell.

There are a couple of notable omissions from the deal as we know it. Judges are exempt, the rationale being to avoid a conflict of interest when they have to rule on the constitutionality of the pension reform. Judges were exempted when the state scaled back pension benefits in 2010 for new employees.

However, we don’t think it’s fair to exempt one group while others are expected to sacrifice. The general public is paying more in taxes, and if other state employees see less generous benefits, judges should as well.

Also, what about pensions for lawmakers? It’s time to eliminate or severely curtail them. Illinois lawmakers are paid well. Their annual salary without stipends is the fifth highest in the country. It’s supposed to be a part-time job, yet lawmakers receive full-time pay and benefits.

They could lead by example by reducing their own benefits. It would be minimal savings, but it would be a good start.

The pension liability grows by $5 million a day. Pensions suck up at least 20 percent of the state’s general revenue fund budget, according to the governor’s office. Pensions are on pace to consume more than 30 cents of every tax dollar by 2019, according to Reboot Illinois.

Page 2 of 2 - Illinois’ worst-in-the-nation pension liability has led to a worst-in-the-nation credit rating, which means Illinois has to pay higher interest rates when it sells bonds to improve roads, bridges and other infrastructure.

Illinois’ fiscal picture is uglier than the bearded lady at the aforementioned carnival. It discourages businesses from investing or re-investing in Illinois.

Lawmakers know that, but have been reluctant to act. Whether they do so Tuesday could hinge on the 2014 election.

Tuesday is politically significant because it is the day after the filing deadline for the March 2014 primary election. Lawmakers will know what competition, if any, they have and whether their vote will hurt them at the ballot box.

It’s difficult to predict what will happen Tuesday. Maybe we should find a fortune teller.